Law Office of Ryan S. Shipp, PLLC

Saving for a home is difficult for the younger generation

A survey conducted by Apartment List paints a bleak picture for the future of home ownership in Florida and the rest of the United States. It focused on the 'millennial" or the 18-34 year old age group of Americans and their ability to afford a new home, and the results were summarized in the Wall Street Journal in May.

The survey conducted by the website Apartment List showed that a large majority of this age group desires to purchase a home in the future. That is the good news. The bad news is that most are not saving for a down payment. More than two thirds of millennials have saved less than $1,000 to purchase a home. Less than a third believe they can save enough for a down payment within three years.

The survey doesn't indicate why the 18-34 generation is unable to save for a home purchase, on the fact that it isn't being done. High student loan debt, debt to income ratio, lower salaries or a high cost of rental housing may contribute to the lack of savings. Other factors may also be involved.

A cash down payment is one of the key factors in obtaining home financing, along with credit scores and verified income. Unless a borrower is a part of a special loan program, most home loans require a significant down payment.

Those who have begun saving for a home may eventually want to meet with an attorney who has experience with these types of real estate transactions. The attorney can advise such clients about the types of paperwork they should expect to have to sign in order to close the purchase.

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